TOKYO (AFX) - Takeda Pharmaceutical Co is expected to report a record group operating profit of around 390 bln yen for the year to March, up 1 pct and 10 bln yen more than previously forecast, The Nihon Keizai Shimbun reported.
Sales of a diabetes drug and other treatments for lifestyle diseases were strong in Japan, the US and Europe, it said.
But higher research and development (R&D) costs and other expenses curbed profit growth. If the estimates hold true, the drugmaker will mark its 14th consecutive year of record profits.
Group sales are seen rising 7 pct to about 1.2 trln yen, the report said.
Takeda's R&D expenditure is estimated to have risen 20 pct to 170 bln yen. But this figure is 10 bln yen less than projected due to delays in purchasing drugs for potential development, the report added.
Group pretax profit is projected to reach roughly 470 bln yen, up 6 pct.
TAP Pharmaceutical Products Inc, the US joint venture that sells Takeda's Prevacid peptic ulcer treatment, has stemmed a downturn in sales and lowered its marketing and litigation expenses. Rising interest rates in the US have boosted returns on invested assets, helping to fatten the bottom line.
For the year ending March 2007, Takeda's group sales are forecast to rise 4 pct to roughly 1.25 trln yen, it said.
While government-set drug prices were lowered an average of nearly 8 pct starting this month, this is expected to be offset by sales growth in core products. The firm is projecting its operating profit to remain flat.
/swp